Govt forms committee to review GO Pakistan’s Rs14 billion fuel price claim

The federal government has constituted a high-level committee to examine a Rs14 billion price differential claim submitted by Gas and Oil Pakistan Ltd under the Inland Freight Equalisation Margin (IFEM) mechanism, according to a notification issued by the Cabinet Division.

The News reported that the claim covers the period from March 21 to April 2, 2026 and was submitted to the Oil and Gas Regulatory Authority.

Ogra had been directed to reimburse any differential arising from imports made by Pakistan State Oil following changes in the petroleum pricing mechanism.

The government, however, raised concerns over the operations of Gas and Oil Pakistan, which are currently under investigation by the Federal Investigation Agency.

The notification stated that although proceedings related to the matter were presently subject to stay orders issued by the Sindh High Court, the allegations, if proven, could result in the submission of a false claim to the regulator.

The government considered the size of the claim and the interim progress report submitted by the FIA sufficient grounds for detailed scrutiny in the public interest.

The committee has been tasked with reviewing the claim and making recommendations to Ogra for further action. The committee will be headed by Sajjad Azhar, Joint Secretary Corporate Finance at the Finance Division.

Other members include Director General Oil at the Petroleum Division Imran Ahmad, Deputy Director Directorate of Investigation Inland Revenue at the Federal Board of Revenue Amin Yasin, Director Audit (P&NR) at the Auditor General of Pakistan Imran Ali Noor, and Ogra Senior Executive Director Finance Misbah Yaqoob, who will serve as member secretary.

According to the notification, the committee has also been authorised to seek records and information from relevant organisations and co-opt technical experts where required.

In a statement, Gas and Oil Pakistan Ltd denied allegations that it had withheld petroleum products or engaged in stockpiling to benefit from expected price revisions.

The company stated that it continued lifting products from refineries according to allocations and operational requirements during the relevant period and maintained uninterrupted supply across its retail network.

It added that industry data showed the company’s market share increased between mid-March and early April, which it said reflected active participation in the market rather than deliberate curtailment of sales.

The company further stated that inventory levels and storage positions had been regularly reported to authorities in line with regulatory requirements and that it remained compliant with all applicable guidelines.

Officials said the formation of the committee reflected the government’s efforts to ensure transparency and safeguard public funds amid increasing scrutiny of petroleum sector claims and subsidy mechanisms.